Current Tennessee Mortgage and Refinance Rates

There are complex calculations and factors determining the mortgage rates lenders can offer you. However, there are also some simple steps you can take right now to get the best mortgage rate:

1. Boost your credit. Your credit score has a huge influence on the mortgage rates you’re offered. In general, the higher your score, the better your rate.
2. Lower your debt-to-income (DTI) ratio. Your DTI ratio signals how likely you are to be able to make your future house payments. In order to show lenders that you’re not a risky bet and receive lower rate offers, you should decrease your DTI ratio. That can look like increasing your income, paying off some debts or getting a cosigner.
3. Buy a single-family, site-built home. If you have some flexibility with the type of home you choose to buy, avoid buying a manufactured home, a multifamily property, a vacation home or an investment property. Those are properties that lenders charge higher rates for, because they’re considered more risky to finance.
4. Pay for mortgage points. Mortgage points can help shave down a high interest rate — typically by up to 0.25 percentage points per point. Making this extra upfront payment can save you money in the long run, but it’s also wise to weigh paying points against simply reducing the loan balance.
5. Compare offers from multiple lenders. It can be tempting to skip this step. However, comparing offers from several lenders can save you thousands — or even tens of thousands — over the life of your loan, according to LendingTree data.

→ Tennessee conventional loans. Conventional loans can be a great choice for borrowers with a good credit score, even if they don’t have a huge down payment saved up. However, you’ll need to meet the minimum requirements set by Fannie Mae and Freddie Mac.

→ Tennessee FHA loans. FHA loan requirements provide an alternative for borrowers who have lower credit scores or otherwise can’t meet conventional loan requirements. You can qualify with a credit score as low as 500, but you’ll have to make at least a 10% down payment. If your preference is to make a smaller down payment, you can put down as little as 3.5% as long as you have at least a 580 credit score.

→  Tennessee VA loans. VA loan requirements are even more accessible, and come with some great perks — these include the ability to put 0% down without paying for mortgage insurance.

→  Tennessee streamline refinances are for borrowers who want to replace a current FHA or VA loan with another loan of the same type. To do this, you’ll use an FHA streamline refinance loan or VA interest rate reduction refinance loan (IRRRL). They’re called “streamline” because they don’t require as much time or paperwork as standard refinances.